Buffett Bid Electrifies Oncor Electric Bankruptcy Process - Berkshire Hathaway Inc. Common Stock (NYSE:BRK/A), Berkshire Hathaway Inc. New Common Stock (NYSE:BRK/B)

Warren Buffett's

Berkshire Hathaway Inc.

(NYSE:

BRK-A

) (NYSE:

BRK-B

) has submitted a bid for Energy Future Holdings Corp.'s

Oncor Electric Delivery Co.

Bloomberg reported

, citing people familiar with the talks.

The report added that Berkshire would join NextEra Energy Inc NEE as a top contender to buy Texas' biggest transmission operator.

A report on BidnessEtc said given Buffett's "tendency toward capitalizing on utilities, Oncor Electric becomes the natural choice due to its profitability." Oncor Electric is one of the most profitable businesses of Energy Future Holdings. The article added, "Another positive factor of the utility companies is stable cash flow, regulated returns, and dividends that always fancy him."

Energy Future has received a number of offers for its electric transmission and distribution divisions, which has resulted in valuing the company around $18 billion. According to BidnessEtc, "The offers come after an investor group led by Hunt Consolidated Inc. failed in its bid to acquire Oncor Electric due to regulatory hurdles."

"The sale is part of Energy Future plans of ending its bankruptcy which will help the company to cut debt. At the time of filing for bankruptcy protection, the company had almost $50 billion in debt."

Buffett's Forays In Energy

In 2000, Buffett completed his first energy venture with the $9 billion joint acquisition of MidAmerican Energy Holdings Co. At the end of 2015, Berkshire Hathaway Energy's total assets came in at $84 billion and had operating revenue of $18 billion.

Buffett 2014's shareholder letter, stated," We will continue to buy and build utility operations throughout the world for decades to come."

According to BidnessEtc, "Berkshire Hathaway Energy empire now consists of Berkshire Hathaway Energy, PacifiCorp., Pacific Power, PacifiCorp Transmission, Rocky Mountain Power, MidAmerican Energy Company, NV Energy, Inc., Northern Powergrid, BHE Pipeline Group, BHE Renewables, AltaLink, BHE US Transmission and HomeServices of America, Inc."

In addition, BidnessEtc noted there are speculations that the billionaire investor is interested in buying Hawaiian Electric Co., if NextEra fails in its $4.3 billion offer for the company. The deal is currently under consideration of state regulators.

Shares of Berkshire Hathaway class B shares closed Friday's regular trading session at $145.97.

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